Mercedes-Benz Q1 2025 Profit Plummets 57% as China Sales Drop 19%

Mercedes-Benz Group recently released its 2025 financial results, reporting annual revenue of €132.2 billion, a 9% year-over-year decline. EBIT (earnings before interest and taxes) stood at €5.82 billion, plunging 57% compared to the previous year—the lowest level since the COVID-19 pandemic. Global vehicle sales totaled 2.16 million units, down 10% year-over-year, including approximately 1.8 million passenger cars. Deliveries in China reached 575,000 units, a sharp 19% drop from the prior year, making it the company’s worst-performing single market. CEO Ola Källenius stated that the results remain within the company’s expected range and announced plans to launch more than 40 new models over the next three years. The company forecasts flat revenue for 2026 but expects a significant rebound in core profitability. Analysts attribute the earnings decline primarily to U.S. tariff hikes, weak economic conditions in Europe, intensifying competition, and inconsistent electrification strategy—having initially pledged full electrification by 2030 before later retracting the plan.